Key defence officials are meeting on Tuesday to thrash out the details of how to make immediate savings to the 2011/2012 budget.

The RAF is bracing itself to its fleet of 134 Tornado GR4 fighter-bombers being slashed in half to just 60 jets to save up to £300 million a year.

Despite challenging the previous government over the helicopter shortages in Afghanistan a key decision will be the likely announcement to cut 12 extra Chinooks that were part of a package ordered by Gordon Brown.

Other important equipment programmes are going to be axed in what will be an embarrassing revision of last October’s Strategic Defence and Security Review.

The MoD has been forced into making the extra cuts after it miscalculated savings in the next financial year.

Related Articles

It was supposed to save £8 billion by 2014-15 as a 7.5 per cut real terms cut to its budget. Half of this was meant to come through headline equipment cuts such as the Harriers, Nimrod reconnaissance planes, frigates and the aircraft carriers Ark Royal and Illustrious. The rest was to come through axing 17,000 Servicemen and 25,000 MoD staff as well as “efficiency savings”.

Service chiefs will sit down today at the Defence Board’s meeting on planning round 2011 (PR11) to discuss what will have to be cut with officials warning that “everything is on the table”.

“We have 34 major procurement programmes and it’s a question of what’s nice to have and what’s necessary to have but no one can see how to take that decision because they’re all regarded as vital,” said an officer involved in the planning.

They will also discuss other savings including exchange rates, fuel and personnel costs.

Operations in Afghanistan could come under threat if the decision is made to chop the fleet of Reaper and Predator unmanned drones that spy and attack insurgents. The move would save an estimated £100 million.

Another candidate for cuts is the new armoured reconnaissance vehicle to replace the ageing Scimitar light tanks. An estimated £100 million would be saved if the MoD cancelled the FRES (Future Rapid Effects System) Scout project with £500 million over four years.

While the Navy suffered the worst cuts out of all three Services in SDSR it could face losing another Type 23 frigate or more likely a Royal Fleet Auxiliary tanker or supply ship.

Although politicians are adamant that there will be no further personnel cuts defence planners are contemplating reducing the Army by a further 5,000 to 90,000.

Ministers were supposed to take the decision on some aspects of further cuts tomorrow but all the main decisions have been delayed to March.

“There is not an endless supply of money and people need to realise there is a serious financial situation and there are difficult choices to make,” one MoD official said.

The Treasury is unlikely to step in to make up the shortfall, he added.

A senior military source said: “What we are being asked to achieve is virtually impossible without wholesale reduction of UK forces worldwide.

“People always said if you thought SDSR was bad then just wait until PR11”.

A MoD spokesman said: “We keep a range of options under consideration at all times regarding future capabilities but no final decisions have been taken.”